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Carbon price could threaten Loy Yang's viability

Loy Yang Power says a carbon price could threaten the viability of Victoria's largest power stations unless more generous compensation is offered.

The chief executive of Loy Yang Power, Ian Nethercote, says a carbon price of $20 per tonne would cost the company about $400 million a year.

He says the Government needs to offer more generous assistance than under the former carbon pricing scheme.

"The offer that was sitting there was going to fall short in terms of being able to keep some of the brown coal businesses viable into the future and in fact would likely result in various impairment of some assets," he said.